Reference no: EM132869233

Simmo Shops uses the perpetual inventory system and makes all credit sales on terms of 2/10, n/30. During May, Simmo Shops completed these transactions: (all figures are GST inclusive.)

May 3 Purchased inventory on credit terms of 3/10, n/60 from Fernvale Plaza, $13 200.
5 Issued cheque no. 574 to purchase furniture for cash, $2 156.
10 Purchased inventory for cash, $1 540, issuing cheque no. 575.
13 Issued cheque no. 576 to pay Fernvale Plaza net amount owed from 3 May.
13 Purchased supplies on credit from Chaplin Supplies, $1 364. Terms were net end-of-month.
20 Purchased inventory on credit terms of net 30 from Cassey Sales, $4 301.
22 Purchased furniture on credit terms of 3/10, n/60 from Fernvale Plaza, $1 562.
22 Issued cheque no. 577 to pay for insurance coverage, debiting Prepaid insurance for $2 695.
25 Issued cheque no. 578 to pay electricity and gas, $770.
28 Purchased inventory on credit terms of 2/10, n/30 from Chaplin Supplies, $836.
29 Returned damaged inventory to Chaplin Supplies, issuing a debit memo for $836.
30 Issued cheque no. 579 to pay Chaplin Supplies on account from 13 May.
31 Issued cheque no. 580 to pay monthly salaries of $2 200.

Enter the transactions in a Purchases journal, a Cash Payments journal and a General journal or Purchase Returns journal, as appropriate.

Open four-column general ledger accounts using Simmo Shops' account numbers that follow.

Open these accounts in the subsidiary ledgers: Accounts payable ledger- Fernvale Plaza, Chaplin Supplies and Cassey Sales.

Post daily to the Accounts Payable ledger. On 31 May, post to the general ledger.

Total each column of the special journals. Show that total debits equal total credits in each special journal.

Balance the total of the customer account balances in the Accounts Payable ledger and Accounts Payable in the General Ledger.

Attachment:- Purch Cash Pay General Journals.rar